[House Report 107-128]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-128

======================================================================



 
       FOR THE RELIEF OF RABON LOWRY OF PEMBROKE, NORTH CAROLINA

                                _______
                                

  July 10, 2001.--Referred to the Private Calendar and ordered to be 
                                printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 807]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 807) for the relief of Rabon Lowry of Pembroke, 
North Carolina, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for the Legislation..........................     1
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Oversight Findings.....................................     2
Performance Goals and Objectives.................................     2
New Budget Authority and Tax Expenditures........................     2
Congressional Budget Office Cost Estimate........................     3
Constitutional Authority Statement...............................     3
Markup Transcript................................................     4

                          Purpose and Summary

    H.R. 807 would pay Mr. Lowry $1,000,000 for damages he 
incurred as a result of a breach of the contract he entered 
into with the Department of the Army.

                Background and Need for the Legislation

    Pembroke Machine Company (PMC) was a small Native American 
owned company which produced precision machined parts for U.S. 
Government agencies. Mr. Lowry was the owner of that company. 
PMC entered into a major contract (over 60% of the company's 
work) with the Department of the Army to produce M55 
projectiles. In 1988, PMC and the Army entered into a dispute 
over machining of the base radius, 20 MM projectile. Four 
months later, the dispute was still not resolved and PMC was 
forced to file Chapter 11. After several attempts to resolve 
the dispute, in February 1989, PMC filed a claim with Army for 
work stoppage in the amount of $1,458,698.00. In July 1989, 
Army denied the claim in its entirety. In July 1994, after 
several appeals and denials, the Under Secretary of Defense 
suggested private bill relief as a means to settle the issue. 
The first private bill for Mr. Lowry was introduced by 
Congressman Rose in the 104th Congress. In August 1998, 3 years 
later, the Army sent a report to the Committee opposing the 
private bill. In the 106th Congress, Congressman McIntyre 
reintroduced a private bill for Mr. Lowry.
    In November 1999, Congressman McIntyre sent a letter to the 
Secretary of Defense asking for a reexamination of the Army's 
unfavorable position on the legislation. In January 2000, the 
Department of Defense responded to Congressman McIntyre request 
stating that ``As a consequence of your request, we made a 
careful review of the facts surrounding the dispute between the 
Department of the Army and Pembroke Machine Company and we now 
withdraw our previous objections to the bill. We no longer 
object to its enactment.''

                                Hearings

    The Committee's Subcommittee on Immigration and Claims held 
no hearings on H.R. 807.

                        Committee Consideration

    On June 6, 2001, the Subcommittee on Immigration and Claims 
met in open session and ordered favorably reported the bill 
H.R. 807, without amendment, by voice vote, a quorum being 
present.
    On June 20, 2001, the Committee on the Judiciary met in 
open session and ordered reported favorably the bill H.R. 807, 
without amendment, by voice vote, a quorum being present.

                      Committee Oversight Findings

    In compliance with clause 3(c)(l) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                    Performance Goals and Objectives

    This bill is based on the breach of contract by the Army. 
The Committee hopes that in the future the Army will pay closer 
attention to the contracts it enters into.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House Rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 807, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 22, 2001.
Hon. F. James Sensenbrenner, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 807, a bill for 
the relief of Rabon Lowry of Pembroke, North Carolina.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz, who can be reached at 226-2860.
            Sincerely,
                                  Dan L. Crippen, Director.

Enclosure

cc:
        Honorable John Conyers Jr.
        Ranking Member
H.R. 807--A bill for the relief of Rabon Lowry of Pembroke, North 
        Carolina
    H.R. 807 would direct the Secretary of the Treasury to pay 
$1,000,000 to Rabon Lowry as compensation for damages he 
incurred as a result of a breach of contract by the Department 
of the Army. Assuming enactment of the bill later this year, 
CBO expects the payment to be made in fiscal year 2002. Because 
H.R. 807 would affect direct spending, pay-as-you-go procedures 
would apply.
    The CBO staff contact for this estimate is Mark Grabowicz, 
who can be reached at 226-2860. This estimate was approved by 
Robert A. Sunshine, Assistant Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article 1, section 8 of the Constitution.

                           Markup Transcript



                            BUSINESS MEETING

                        WEDNESDAY, JUNE 20, 2001

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 11:07 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner [Chairman of the Committee] presiding.
    Chairman Sensenbrenner. The Committee will be in order. The 
Chair would like to announce what our game plan is for today.
    Mr. Conyers has got some back-to-back speeches at noon, so 
we will go through the schedule in the order which it appears, 
with one exception, until noon, and then we will recess for an 
hour and a half for lunch, and I would ask the Members to be 
back promptly at 1:30. The exception to the schedule, again, at 
Mr. Conyers' request, is that we will move H.R. 1407, which is 
the airline antitrust bill, up third on the agenda, ahead of 
the two patent bills. So we will do the two private bills, the 
airline bill, the two patent bills, the flag amendment and then 
the DOJ Authorization Act, and we will stay here until we are 
done with this complete schedule.
    So the Chair now recognizes the gentleman from 
Pennsylvania, the Chairman of the Subcommittee on Immigration 
and Claims, to make a unanimous consent request on two private 
bills. And without objection, the unanimous consents will be 
considered en bloc.
    Mr. Gekas. Mr. Chairman, the Subcommittee on Immigration 
and Claims reports favorably the bill S. 560, and moves its 
favorable recommendation to the full House.
    Chairman Sensenbrenner. Would you make a unanimous consent 
request on the other one, too.
    Mr. Gekas. And on the similar request on H.R. 807, and ask 
unanimous consent that they be considered together en bloc.
    Chairman Sensenbrenner. Without objection, so ordered.
    [H.R. 807 follows:]
    
    
    Chairman Sensenbrenner. Generally, we have dealt with 
private bills by unanimous consent. Is there any objection, 
while we do not have a reporting quorum present, without 
objection, the previous question is ordered on both bills 
pending the arrival of a reporting quorum.
    Hearing none, so ordered.
    The Chair now notes the presence of a reporting quorum. The 
Committee now returns to the pending unfinished business, upon 
which the previous question was ordered on H.R. 807 and S. 560, 
which have been considered en bloc.
    The previous question has already been ordered. All of 
those in favor of reporting the bill favorably will signify by 
saying aye.
    Those opposed, no.
    The ayes appear to have it. The ayes have it, and the 
motion to report favorably is agreed to. All Members will be 
entitled to place statements in the record on the two private 
bills.
    Ms. Jackson Lee. Mr. Chairman?
    Chairman Sensenbrenner. For what purpose does the 
gentlewoman from Texas seek recognition?
    Ms. Jackson Lee. To strike the last word.
    Chairman Sensenbrenner. We have no pending question before 
the Committee.
    Ms. Jackson Lee. Well, parliamentary inquiry. I wanted to 
comment----
    Chairman Sensenbrenner. State your inquiry.
    Ms. Jackson Lee. The inquiry is on bill S. 560. That is a 
private bill and the bill that we just passed, which was 
another private bill, and I am losing the number right now.
    Chairman Sensenbrenner. H.R. 807 is the number.
    Ms. Jackson Lee. 807, correct. When you called it up, I was 
delayed, and I want to make sure that the support, in addition 
to one's vote, can be acknowledged by submitting statements 
into the record.
    Chairman Sensenbrenner. The Chair just said that without 
objection all Members may insert statements in the record 
relative to the two private bills just----
    Ms. Jackson Lee. Then I add my support for those bills and 
will submit statements into the record.
    [The prepared statement of Ms. Jackson Lee follows:]
       Prepared Statement of the Honorable Sheila Jackson Lee, a 
           Representative in Congress From the State of Texas
    I support private bill, H.R. 807 which provides $1M of relief to 
Rabon Lowry, the president of Pembroke Machine Company, Inc., due to 
the Department of the Army's breach of contract.
    Pembroke entered into a major contract with the Department of the 
Army to produce M55 projectiles. In 1988, there was a contract dispute. 
As a result, Pembroke was forced to file Chapter 11. In 1989, Pembroke 
filed a claim for work stoppage in the amount of $1,485,698.00. The 
Army denied the claim. In 1994, the Under Secretary of Defense 
suggested private bill relief as a means to settle the issue.
    The facts of this case have shown that a private bill is necessary 
to provide relief as a means to settle the issue.

    Thank you.

                                  
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